sme development in sri lanka 2003

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 S MAL LAN D ME DI U M E N T E RP RI S E DE VE L O P ME N T  I N S R I LAN K A :A R evie w  A r u n aS.Gama g e  ABSTRACT  Sm allandMe dium Enter pr is e s( SMEs ) pl ayanimpo r t an tr ol ei nan yec on omyt hr ou gh gene rati onofem pl oym ent s ,contri but i ng t ot he gr ow t hof G D P ,em bar ki ng on i nnovat i onsand s t i m ulati ngofot her ec ono mi c acti vi ties .T hi ssectori s s ai d t o be theback bon e of alldevel oped andde ve l opi ngnat i ons . So,t hede ve l opm e nt oft hi ssect orispar am ounti m por t antforany countr yirr es pec ti ve of t hei r l eve l ofdevel opm ent.T hi s i seve nm or ei m por t antt odevel opi ng countr i e sw herepove r t yandune m pl oym entaret hepers i s t i ngpr oble m si nt hos ee co nom i e s. H avi ngunder s t oodthi s fact , s ucc es si vegove r nm entsi nSriLankahavetakenvar iouss t eps , f rom t i m et ot i m e,t opromotet hi s vi t al sec t ors i nce i ndepe nden ce. B ut,w henanal yzi ngt he  pr es ent contri but i onof t hi s s ec t ori nt henat i onal ec onomy,it i s cl ear t hat t hesector has not  achi ev eddes i redlevelofc ont r i but i onw henco m par edwi t hotherdevel ope danddevel opi ng countr i e s i nt he r e gi on.So,t he r e se em s t obe avas t oppor t uni tyf or Sr i L ankat ohar ne s st he  opportuni t ybydevel opi ngt hi s vi talsect or .S o,t he objec t i ve of t hi s paper i stoprovideabr ief  over vi e w of SMEs e ct ori nSr i L anka,andtomake s ugge s t i on forenhanci ngt hec apac i t i e s of  SMEs f oras us t ai nab l e de ve l opm ent i nSr i Lanka. K eywords :Sm al land Me di um E nt er pr i s esi n Sr iL anka,SMEP olicies i n Sr iL anka, E conomic  D evel opment, E nt r epreneur s hi p, S m al l S cal e I ndust r y. 1.IN TR O D U CTI O N  Sri L ankais anIs l andr e pub li cw ithat ot allandar e aof65,61 0s qua rekil om eter s .It i s  locat ed ont he southeasts i deof I ndi a whichisit s cl osest nei ghbo r .Itis a m ul ti-raci al count r y  w hich has a t otal popul at i onof19. 4 m i llionatpres ent .T he lifeexpect ancy at bi rt h i s 73year s  andl iteracyratew hi c hi s 9 1.4i s t hesec ondhi ghe sti nA s i a. A c c or di ngtot heWor l dB ank  class i f i cat i onS r iL ankaisal ow er -mi ddl eincome coun tr yw it hone of t he hi ghe s t per capi t a  inc om eint heSout hA s ianr e gi onof R s . 6 3 , 752. 0 0( U S$841 ) i nt heyear2000. D e s pi t et he  w el l - document ed et hni ccr i s i s w hi ch r es ul t ed i n a cul t ur al l y base d ci vi l w ar,w i t h hi ghdef ense  e xpe ndi turesandi nc r ease dl e ve l of f or e i gnde bt s , Sr i L ankahas be e nabl et om ai nt ai nan  aver ag egr ow t hrateof 5pe r c e nt ov e r t he l as t 5de c ad es. T he H um an D e ve l op m e nt I nd e x  w hi ch i s 73.0 i n 199 9 hi ghl i ght t he s i gni f i cant posi t i ve changes i n t he r eall i vi ng s t anda r d ofS r i  L ankaw he ret he r e has be en hi gh l e ve l of sat i s f ac t i on of bas i cnee ds al t houg h G D Ppe r c api t a  13 3 名城論叢 年3

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Page 1: SME Development in Sri Lanka 2003

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